Sir Martin Sorrell has narrowly seen off a shareholder revolt over executive pay after more than 40% of investors rejected the £7.9m payout awarded to WPP directors last year.

Just under 42% of shareholders who voted before Thursday's AGM in Dublin refused to back WPP's remuneration report, which saw company directors paid a total of £7.88m in 2010. The dissenters were disgruntled over one director receiving a pay rise of more than 30% for this year.

Mark Read, the chief executive of WPP Digital, was awarded a 30.7% pay increase by the company's remuneration committee, taking his basic salary from £325,000 to £425,000. Read, who received an £872,000 remuneration package including a £219,000 bonus last year, was deemed to have an "uncompetitive" salary in comparison to his peers in the market place.

In WPP's 2010 annual report published in April, Jeffrey Rosen, chairman of the compensation committee, said: "Given the increased importance of digital strategy to the group and Mr Read's personal development, an increase to his remuneration was in order."

Read's salary increase greatly increases the opportunity for total remuneration, given bonuses are predicated on a percentage of the base salary. It was Read's first pay rise since 2009.

Shareholders passed 24 of 26 resolutions with at least 90% approval – 14 were in excess of 99% – but the issue of WPP's remuneration report proved to be a bone of contention, although Sorrell was not asked directly about the issue – or any other – at the AGM.

It is understood that the "no" vote by a significant minority of shareholders – who rejected the entire remuneration report on the basis of being disgruntled with the scale of Read's pay rise – was influenced by the recommendation of a report by Institutional Shareholder Services.